Estimate your monthly loan payment, total interest and total loan cost based on the amount borrowed, interest rate and repayment term.
The table below shows how your estimated loan balance could change each year based on the assumptions entered above.
| Year | Principal paid | Interest paid | Remaining balance |
|---|
See how your outstanding loan balance decreases as you repay principal and pay interest over the selected term.
A loan calculator estimates the fixed monthly payment required to repay an amount borrowed over a selected period. It uses the loan principal, annual interest rate and repayment term to calculate the payment, total interest and total amount paid.
For a loan with a non-zero monthly interest rate, the calculation uses the standard amortization formula: M = P × [r(1 + r)n] / [(1 + r)n − 1]
In this formula, M is the monthly payment, P is the original loan amount, r is the monthly interest rate and n is the total number of monthly payments. The annual interest rate is divided by 12 to obtain the monthly rate. If the interest rate is 0%, the loan amount is divided evenly across all scheduled monthly payments.
This calculator assumes a constant interest rate and regular monthly payments. It estimates principal and interest and does not include lender fees or other additional charges.
The annual amortization table shows how much principal is repaid and how much interest is paid during each year. It also displays the remaining loan balance at the end of the year. These figures help explain how the loan is repaid rather than showing only the monthly payment.
The repayment chart presents the same information visually. The purple line represents the remaining loan balance, the blue line represents cumulative principal repaid, and the green line represents cumulative interest paid.
As payments are made, the outstanding balance generally decreases while cumulative principal and interest paid increase. With a 0% interest rate, cumulative interest remains at zero and the principal is repaid evenly across the selected term.
The table and chart are based on the assumptions entered into the calculator. They are estimates of a repayment schedule, not a lender's official loan statement.
The interest rate affects the cost of borrowing. For the same loan amount and repayment term, a higher interest rate generally increases both the monthly payment and the total interest paid.
The repayment term also affects the result. A longer term usually reduces the required monthly payment because the loan is spread across more payments. However, interest can accumulate over a longer period, increasing the total borrowing cost.
To compare scenarios, keep the loan amount unchanged and change only the interest rate. Then compare different repayment terms while keeping the other inputs constant. This makes it easier to understand how each assumption affects the estimated payment and total cost.
Suppose you borrow $25,000 at an assumed annual interest rate of 7% and repay the loan over five years, with 60 monthly payments. Assuming a constant rate and no additional fees, the estimated monthly payment is approximately $495.03.
Over the full term, the estimated total amount paid is approximately $29,701.80. This includes approximately $4,701.80 in interest in addition to the original $25,000 principal.
This example illustrates why the monthly payment alone does not show the full cost of a loan. Comparing the total interest and total amount paid can help you evaluate different repayment terms and interest-rate assumptions.
The example is hypothetical. Actual loan offers may use different rates, payment schedules or fee structures, so the final cost may differ from this estimate.
This calculator can estimate general amortizing loans with regular monthly payments, such as personal loans, auto loans and other installment loans. Actual terms and repayment conditions vary by lender and product.
No. The calculation includes the principal and interest defined by the inputs. Origination fees, application fees, insurance and other charges are not included. These costs can increase the actual cost of borrowing.
When the interest rate is 0%, the loan amount is divided evenly across the scheduled monthly payments. For example, a $25,000 loan over five years would have a monthly payment of approximately $416.67 and no interest in this calculation.
A longer term spreads repayment over more months, which can lower the monthly payment. However, with a positive interest rate, interest is charged over a longer period, so the total interest paid may increase.
Principal is the amount borrowed that remains to be repaid. Interest is the cost of borrowing that amount. Each payment on a typical amortizing loan covers both, and the proportions change over the repayment period.
No. The results are estimates based on the loan amount, interest rate and repayment term entered. Actual loan agreements may include different terms, fees or payment arrangements.
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This loan calculator is provided for educational and informational purposes only. It does not constitute financial, loan, tax or legal advice.
Actual loan payments and total borrowing costs may differ because of interest rates, lender fees, insurance, taxes and other expenses.